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tv   Power Lunch  CNBC  September 11, 2013 1:00pm-2:01pm EDT

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talk about a soda maker. that was the big fear. the stock is doing very well. it's going to do better. >> real quick morgan stanley good when your biggest competitor in wealth management upgrades you. >> applied materials. >> we will see you tomorrow. "power lunch" begins now. >> halftime is over. "power lunch" and the second half of the trading day starts right now. >> welcome, everybody, to "power lunch." a month ago we were all talking about a housing boom. now, potentially a bursting bubble. where do we stand in we're going to talk to one of the leading housing economists in the united states and get some answers in one minute's time. rotten pi rott rotten apple. after yesterday's launch in cup per tino, everyone is ripping into the company asking whether its best days are over. all right. the stock having its second worst day of the year and right now apple shares are down. look at that, $27 a share.
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pipa as president obama backs off an immediate attack for syria, what does iran think of this? does this give iran a reason to keep the nuclear centrifuges spinning. meanwhile, though, let's check in with sue at the nyse. >> hi, ty. a strong day here on the floor of the nyse. the dow trading near the highs of the trading session and looking for its third straight triple digit gain. we're off the triple digit mark but not by much. health care and telecoms leading, utilities lagging, tech lagging. you saw that chart of apple down better than 5%. right now the dow is up 94 points. the nasdaq is off 6.25 points on the trading session and the s&p 500 is up about 2.5. housing a big story today. applications for u.s. home loans plunged as interest rates marched to their highs of the year. so what does all of this mean for the housing market?
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a difference of opinion now from susan, professor of real estate at the wharton school of business along with cnbc.com's net editor senior editor john carney and susan suggests we are not in a housing bubble. john disagrees. he penned that article the other day for cnbc.com. john, i'm going to start with you. make your case and the index that you were citing in your piece. >> absolutely. >> about why we have a housing bubble on our hands. >> right. the national association of realtors puts together what they call their affordability index. it's always -- it always says houses are affordable. not surprisingly constructed by realtors. it's been plummeting lately and the affordability has plummeted below its long-term trend line. the only other time it's done that for months on end, was during the last housing bubble beginning in 2004. that was the indication that be w he were in a bubble then. once again it's an indication we're in a bubble. >> susan, you disagree. tell me why given what john just cited. >> well the plunge is very
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interesting. how fast that affordability has declined. but still, 60% of -- we have more, the average family has more than 60% of the income they need to buy the median house. >> okay. hold that thought, susan. >> right. well that's definitely true. >> john. >> sorry. >> i have to go to rick santelli. this will involve the housing market because we have the ten-year auction today. what does it look like? >> holy cow. auction gets an a-plus. 21 billion reopened. nine year 11 month we auctioned the series last month. the yield 2.946. well below the market of 297 offered at 296.5. the bid to cover 286 is higher than a 27310 auction average on a day you had to choose between verizon ten years at 520 and our action here at 294, i am amazed how many picks the government's
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side. a-plus auction. back to you. >> is that interesting and i'm not sure that that's actually a good sign because, you know, when you can get a higher yield somewhere else considerably higher, lots of times people looking for yield will go that way. susan, why don't you finish your thought. we did see that ten-year note action come in. one of the reasons people have been pulling out of the housing market is the perception that rates will go higher. >> and they willp. and they've already gone up 130 basis points, which is huge. so we're at 4.7 mortgage rate but historically that's still low. difficult to get a mortgage. that's where the real issue is. also housing prices are going up and going up at an amazing speed. i think they're about to decelerate so i'm agreeing it's not a bubble, not going to collapse, but slowing in the recovery is on the cards. >> she's kind of in that gray area. agreeing with you on some aspects, john, but not on both. >> look, another nonquantitative way of thinking about housing bubbles is what do people expect housing prices to do?
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if you ask -- this is anecdotally i haven't done a global survey, do you think housing prices are going up, almost everybody i talked to says yes. a recent survey by the real estate company red fin, 33% of the people, a third of the people buying houses cited rising prices is the reason they're buying now. that is a classic cate caste schiller answer for a bubble. one of the indicators when people think housing prices are only going to go up and they need to buy now and they -- buying as an investment. >> except when it's rationale. except when it's rationale and prices are going up. >> it's absolutely right. people have been -- prices are going up and they'll keep -- and i hope that you're right. i hope that we're not going to see -- >> even -- >> a crash, but a slow deflation, but right now i would say we're in bubble territory, but that doesn't mean it bursts messily. we're a little smarter about things. >> we're kind of opposite. i see prices going up at a decelerating rate, still not at
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fundamentals relatives to rents or incomes, more to go, although at a slower rate. >> all right. we'll leave it there. thank you. very interesting discussion both of you, susan, john, thanks as always. ty, up to you. >> apple shares continuing to get slammed. a slew of wall street downgrades a day after the company unveiled its lineups of iphones. apple down a whopping 26, almost $27 a share at 468.02. we know what wall street thinks of yesterday's big product rollout, but what do techies think about the latest offerings. julia boorstin has been speaking to them in san francisco. julia? >> well, tyler, the 3,000 entrepreneurs and investors here at tech crunch disrupt are the ultimate early adopters. exactly who apple wanted to be excited about its new products. we spoke to the ceos of a number of start-ups here and let's just say they were not impressed. >> i saw the trailer of the new
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iphone. it's really ugly. every iphone has been like prettier every time. this one unfortunately not. >> i feel like they've gotten stagnant because they're comfortable and i think their innovation has kind of slowed down just a tad bit and i'm guessing that in the next year so they are going to release something awesome and normal apple fashion. >> doesn't look like an apple phone. it looks cheap, plasticy i guess. i don't know about the cases. they look horrible. it's -- it doesn't -- i bet steve is probably rolling in his grave. >> the folks i spoke to are a mix of loyal apple fans and android users. the consensuses seems to be apple's low cast iphone wasn't low enough in contrast to the slew of androids out there. this bright colored look that apple unveiled yesterday didn't feel right and didn't fit with apple's usually sleek style. back over to you.
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>> julia, stay with us. we'll bring in our tech correspondent john fortt who is at that tech crunch event. it seems to me whenever you're counting on a new operating system and new cases and colors to juice the sales and create excitement, you're grabbing on to a pretty thin reed. >> not necessarily, tyler. let's look at this from a business perspective. developers, of course, want as many people as possible to have the phone in hand because that creates a bigger market for them to sell apps. a number of people, market -- i talked to at the end of last year were hoping for a cheaper phone to expand market share. we have to see how this thing sells. the colors seem to be skewed toward a particularly young demographic, what people might technically think of as a skewing female demographic and this crowd here doesn't exactly skew female as we've learned in a number of ways. >> did what they do -- does what they did yesterday, do enough to
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attract the customers in the emerging markets, especially china? i don't think they announced any carriage deal with china mobile, correct me if i'm wrong on that? >> no, they didn't, tyler. i think that's the big headline out of this. this was not a play for the emerging market at all. they didn't get china mobile. the iphone 5c is just 100 bucks cheaper than the 5s. that doesn't create a new entry point for those markets. one thing that i think is interesting is tim cook is going with the mac playbook in the sense he's making a lot of the unique apps. iwork and iphoto free. in a sense trying to enhance the premium value for the premium buyer, much of which is in the developed markets, a little of which is in developing markets, but maybe they're trying to leave some room for the iwatch at a lower price point. i made the point earlier on "squawk on the street" the play book with the netbook was not to do a netbook when everybody wanted apple to do a netbook, to do the ipad. maybe they're trying to make the
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watch the lower entry point and do it at a better margin than with the phone. we will have to wait and. >> julia, what do the people tell you they would like to see apple do by way of innovation? >> well, of course people here are curious about a watch. there are a lot of people hearing those wearable devices like the fit bit and even the pebble. so i think there's a lot of anticipation for that watch that john mentioned. but also, this mysterious apple tv. we expect to see an update of apple's current apple tv box, that little hockey puck, but i think people are looking bigger than that. will we see a real apple television that takes its digital content offerings to the next level and some people we spoke to were disappointed the iphones maybe didn't move the needle, maybe weren't as low cost as they were hoping for but better for the big announcements like a apple tv or watch for it to be ready before it unveils it. >> thank you very much. we appreciate your reporting from tech crunch out in san
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francisco. meantime let's go to seema mody for a market flash on how stocks in the apple ecosystem are reacting. >> lack of excitement around apple's newest iphones not only impacting shares of apple, but rumored suppliers as well. chip players qualcomm, avaggo and cirrus and another player with apple exposure, advanced micro devices which specializes in micro processors. it shot up after we got word that apple's iphone would use a chip, but from what some analysts are saying was a disappointing iphone launch from apple. back to you. >> thank you, seema. netflix is falling in today's trading session after hitting another all-time high earlier today. btig downgrading the stock to neutral from buy. citing that high stock price. right now it is down better than 2%. but the stock has been on quite a roll. it's up some 230% for the year.
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ty? >> all right. sue, sears taking a hit. the stock had surged the previous two sessions on a report that it could be worth more than $100 a share due to its vast real estate holdings but right now that stock is down almost 3% at 55.05. credit suisse dismissed the reports repeating its underperformed target on the retailer with a price target of $20 a share. the lowest such target on wall street. meanwhile diplomacy back on. no u.s. attack on syria's chemical weapons, at least not now. so what does iran think of all this? find out next. the real cost of being ready for war. we break down the numbers. nascar is ab.out excitement but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with
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hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans. ♪ there'll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom. and you? well, you're the chief life officer. you just need the right professional to help you take charge. ♪
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welcome back to "power lunch." i'm seema mody. as the dow sits on a triple digit gain, take a look at the best performing stock ibm. big blue shares up 2% outperforming its peers in the large cap tech space contributing nearly 30 points to the dow gains so far to date. also nearly erasing its losses for this year. tyler, back to you. >> thanks very much. so as the world waits for the crisis in syria to play out, what is the cost of being ready for war? eamon javers in washington with the details. >> it's one of the most difficult questions to answer here. what does it cost to keep the u.s. military poised as
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president barack obama said he wants to keep it for a strike on syria. take a look at this list here of the u.s. navy ships that are in the mediterranean right now and what you see is we've got four destroyers "the uss gravly" "ramage" "barry" "stout" and the "uss san antonio" is in the med as well. it costs about $7 million a week to operate a destroyer. i talked to a high ranking department of defense official earlier today that told me you can't necessarily attribute all of that cost of the $7 million a week to those ships and say that's what this syria operation is going to cost because those ships would be deployed somewhere anyway, whether the persian gulf, indian ocean, atlantic, somewhere they would be on active duty. not necessarily a $7 million a week per ship cost but this official did say that you can definitely figure out what it would cost to do this strike on
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syria, estimating about 200 cruise missiles could cost the united states about a quarter of a billion dollars. those cruise missiles are extremely expensive. so if we went ahead with this strike we definitely know that would cost the u.s. tax payer a lot of in uny. >> indeed, it would. i'll take it from there. what are iran's leaders thinking and saying as the u.s. debates striking syria? ali nader is an iran expert with the rand group live in washington with us. nice to see you again. >> good to be here. thank you. >> so how is the u.s. now perceived by iran and the west in general? do we look weak to iran because we have not put this strike in effect or not? >> no, not necessarily. i think the iranian leadership, its primary concern is still the sanctions imposed by the united states and the international community, so for them, sanctions are much more hurtful than a u.s. military strike against syria.
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of course, the iranian government doesn't wants its ally in syria to be attacked, but it's also in a quandary because the iranians have condemned use of chemical weapons. they experienced it during the war with iraq. they know the effects of it. it would be embarrassing for the new leadership in iran, the new president, to side too closely with the assad regime. >> so if eventually the u.s. does strike syria, what might iran's retaliation be, if anything at all? >> the iranian leadership has threatened retaliation, especially the revolutionary guards, but i think they have an interest in not escalating the crisis too much because iran would ultimately suffer. they need to lift sanctions and reach a diplomatic deal with the united states. i think if they're limited u.s. air strikes, iran might be able to tolerate them without significant retaliation. >> on a separate note but
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perhaps related there's a report from russia today the russians are going to send advanced surface-to-air missiles to iran and another round of nuclear talks is set for the end of the month. iran's new president saying today that basically our government will not give up one iota of its absolute rights in terms of its rights to have nuclear weapons. so it sounds as though they're still taking that hard line. is that the way you read it? >> no. what rowhani the new president has said is that he will protect iran's right to enrich uranium. he has said the nuclear program has to be peaceful, so i think his approach is much softer than the former president mahmoud ahmadinejad. i think rowhani wants a win/win situation in which iran keeps its uranium enrichment program but the west makes sure that iran does not move forward a nuclear weapons breakout capability and this is a possibility because the u.s. does have leverage over iran.
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sanctions are hurting the iranian regime, so it does have to negotiate. >> yeah. >> big time. >> ali, nice to see you again. thanks for joining us. >> take care. >> bringing mom and dad to work to your job interviews. more and more companies are meeting the parents when they hire young millennials. we'll tell you why. >> coming up, power pitch. start-ups give us their 60-second pitch. >> i'm kay. my name is [ inaudible ]. >> we yif you go insight into the capital. >> politics is a terrible place to try to make money. >> do these founders have what it takes. >> are you in or are you out on elecnext. >> stay tuned to find out. we went out and asked people a simple question:
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how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much
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is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ time now for our series the power pitch where innovators get 60 seconds to make their pitch and then our panel of experts will decide whether they have what it takes to become the next big thing. >> i'm mandy drury. on today's power pitch a company that wants to use big data to help anyone, anywhere become informed and engaged. this is the ceo of electnext. before running her company she studied and worked in politics as a stanford undergrad, princeton ph.d. and fullbright
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scholar and worked in the 2008 presidential election as a finance associate for hillary clinton's campaign and this is her power pitch. >> i'm keya. my company is electnext and we are pioneering data driven engagement delivered in your political news. our latest product is a digital political baseball card. these are interactive profiles on every u.s. politician from city council to president embedded in on-line news. we build the profiles in three steps. first we open aggregate structure as much political data as we can get our hands on. we offer a layer of an lytics to that data base. we can extract the most relevant insights. we work with publishers to put those baseball cards in your news meeting you where you're at. in the moment you're reading about a political person or issue, we help you learn more.
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our primary audience is the public and we also engage politicians who can subscribe to an electnext service to modify and amplify their media across a publisher network. >> okay. on the right side of your screen, she can hear us but can't react just yet. on our panel, john, buzzfeed president and coo along with insanely popular lists and cute pics includes the buzzfeed politics. they broke news of mccain's endorsement of romney and news of hillary clinton's 2016 campaign. we have tech investors adviser chris sh showeder. backed by sequoia ventures and sold last year. he was also the ceo of "washington post" "newsweek" interactive. let's talk about electnext. first of all what did you think about the pitch? >> there's a big opportunity for data to drive reporting but i
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don't like the idea they're distributing it on other publishers. putting your fate in their hands is exactly the opposite of what i think she should be doing. >> what about you, chris? >> i love the idea more information is at our hands to make better decisions but i'm not sure there's going to be a great business model behind this one. >> my question is going to be, how are they going to be able to add subscribers at a fast enough pace. this is how they make their money and that's what it's about, they have to make this beyond a hobby. keya, you're in the hot seat. chris, would you like to ask the first question. >> do you think anybody cares and there's a sustainable business in all this? >> that's one of the reasons why we've decided to adopt a distribution strategy rather than a destination strategy for this business because there is at this moment in time, a definite issue with getting people to pay attention to politics at anything other than the national level or other than at election time. >> how can you use socially drive engagement. >> everyone has take an destination, built on top of social strategy and none of it
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has worked. what has been shown to work better at the gain more traction is a data driven strategy that adopts a destination, go where people are first and at a later stage tried to incorporate some of the social elements of places like buzzfeed. >> how many subscribers do you have and how fast are you adding skub describers? >> a subscription business comes in. this is an analytics dashboard through which they can monitor, respond to and amplify their earned media. in terms of our paid product it has been live now and out in the marketplace for just over six weeks. we have started with a very narrow initial target market that is state level legislative offices. and right now, our run rate is $250,000 a year. we would expect given an expansion of that target market we could be upwards of ten times that much. >> how many subscribers do you have at this stage after six weeks of doing that? >> we have just over 200. >> how do you think that people will see what you bring to the value is so much more important
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than what they have right now they will be willing to pay this for a sustainable amount of time. >> political editorial teams in particular understand that data is the new content and that is what we're bringing specifically for the political vertical and the second step is there are features that we'll be rolling out that will allow us to share revenue from our political customers back to publishers. >> okay. you heard what keya had to say. we need to work out whether or not we are in or out on electnext. john, go first. >> disrupt the incumbents, don't play along with them. they're going to slow you down and it takes the wind out of being a start-up. i believe that can happen for this business and i'm such a bull on media in general and disruptive media start-ups i'm in. >> chris? >> i think she's on the right side of history but having too much tail headwind in trying to get at it. she sounds like a great entrepreneur and on that i'm in. >> i would like to see a little more traction in terms of subscribers before i would say i'm in. i'm in on the concept but out at this stage in terms of the
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business model. you've got two ins, i apologize about that, but what is your reaction. >> thank you all for your comments. it's very helpful to hear from people who have such experience in technology and media and politics. and we're excited to move forward and start to look at at least bringing this into a destination site and leveraging mobile and social. >> fantastic start so far. best of luck to you. thank you very much for joining us. keya of electnext and our panelists john and chris. hope you had fun today. that is today's power pitch. >> all right. you heard what the panelists had to say. two ins, one sort of halfway in but mostly out. we want to hear from you. are you in or out or electnext. cast your vote powerpit powerpitch @cnbc.com. follow the conversation on twitter. quick update on one of our past power pitches, the story telling platform has recently been acquired by live fire. it's the first acquisition for
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live fire. storerify co-founders burt and xavier will stay on the board. terms of the deal not disclosed but obviously someone saw some promise in storified. >> that's why we call it the power pitch. even though we have a strong market down here today, it's a somber day because today marks the 1th anniversary since the september 11th terrorist attacks a couple blocks from here. there have been tributes and moments of silence throughout the day. cantor fitzgerald holding his charity trading day to honor the victims. mary thompson has been at that event all day and a special guest with her. >> cantor fitzgerald was the firm most impacted when the twin towers fell. they lost 654 employees. part of the legacy of the employees and this families is the charity day. last year they raised $12 million. they went to over 100 charities around the world. it's a star studded event, actors including jamie foxx and
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julianne moore here and also dr. ruth westhimer who had this valuable advice for those who are charitable. listen in. >> anybody who's charitable is also charitable in the bedroom. >> okay. . from dr. ruth to mayor rudy. america's mayor rudy giuliani thank you for joining us on this day. we appreciate it. >> it's always an honor to be here. >> you were mentioning off camera that this is always, of course, a very sad day for you because you meet with so many of the victims' families. but when you see something like this, continue for 12 years and you see people continue to be engaged and charitable, after 9/11, how does it make you feel? >> it's part of the complexity of today as it's always been. worst day/best day. worst day, terrible evil, tremendous number of people losing their lives. on the other hand tremendous courage, heroism, in this particular case, taking something bad and turning it
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into something good. that's a very important part of healing to try to take some terrible blow that happens and turn it into something that's good. that's why i like coming here. i see a lot of good happening out of what was probably the worst day of my life. >> let's talk just one question for you about the primaries. last night's primaries looks like we may have a runoff on the democratic side. what are your thoughts on the potential candidates for mayor? >> i mean joe was my deputy mayor on september 11th so today is a special day for me with regard to him. he was the guy that gave me the news when i got out of my van and arrived at the world trade center. we were trapped in a building together when -- thank god we were able to survive. so many others didn't. he was at my side for four months. he was my right hand so i know joe is enormously capable. but today is not a day for politics. i know joe personally.
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so i can say a lot about him. democratic side, i mean i guess you know if there's a runoff for a couple days. they have to do a recount. it will be an interesting race. whoever it is there will be two starkly contrasting views of where the city should go. >> could be an interesting couple months. >> right. >> mayor giuliani, thank you so much for joining us. >> thank you very much. >> thank you. we've been speaking with rudy giuliani, former mayor of new york city. back to you. >> let's hope cantor fitzgerald has a successful fund-raising day today. gold prices are closing. sharon epperson is tracking the action for us. >> hi, sue. it's been a somber and rather quiet day here on the trading floor at the nymex and gold prices closing now basically flat on the session around 1364 an ounce. we are looking at gold prices that are perhaps looking ahead to what will happen next week with the fomc meeting. a lot of traders not wanting to take any big bets ahead of that.
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goldman sachs out saying they believe we're going to continue to see a slide in gold prices because with he are going to see tapering of quantitative easing and they are a 12 month price target of 1175 for gold. back to you. >> all right. thank you so much. as i mentioned kind of a somber day down here on the floor of the new york stock exchange. bob pisani and i were just talking about this anniversary but we have a strong market. a triple digits once again and a good run for the dow jones industrial average. >> what's remarkable, you and i were talking ate this. if this was a year ago apple was down 5% the market would be in turmoil. it was down in turmoil in october of last year when apple was dropping all throughout the month, it was down 10%, the nasdaq was down almost 5%, the s&p down 2%, big tech names were dropping. not today. s&p 500 up seven days in a row now. it's up 3.75% in september. traditionally a bad month. that's not working. on top of that eem, ten days in a row, we have to do research on
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that, get on that robert or kristen and find out the last time you saw that happen. that's largely due to what's going on in china. we've seen that move up. companies raising their dividend. i want to point out because viewers constantly e-mail me, bob, you don't talk about the dividend stocks. philip morris raised their dividend, 4% dividend, that's moved that stock. finally look at this. apple's now at 5% and a lot of big tech stocks are up. ones in consulting, ibm being among them. terra data, accenture. if this would have been a year ago -- >> i think that speaks to those who think that maybe apple has lost some of its coolness and influence and -- that remains to be seen. >> by definition it has lost some of its influence. that's the point of what i'm saying. >> i know. you're brilliant, bob. >> oh, thank you. >> let's talk about apple. it is weighing on the nasdaq and sheila is following the big movers up town at the nasdaq. hey, sheila. >> hey there as you said it is all about apple at the nasdaq.
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that stock really the reason why we're seeing the index in the red today. you know what's interesting is that there is this one, two, three punch from apple. the disappointing iphone launch, the disappointing lack of a deal with china mobile but three analysts downgrades this morning causing the stock down more than 5%. here's what's interesting. this is a little bit what you and bob were talking about. as much as the talk is about apple today in the nasdaq if you take a look at the nasdaq winners year to date, don't forget the nasdaq hit that 13-year high yesterday, not names that you know of really, tesla, green mountain coffee, netflix, micron technologies, apple not in that mix, sue. >> thanks so much, sheila. to the bond market where we had an a-plus auction today. on a day as rick santelli pointed out we had the largest corporate bond offering in history and with really decent yields. i'm not sure whether i'm happy about an a-plus auction or not. >> it's a counterintuitive to me. a lot of traders bet against the
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gov side and didn't fare well. a two day chart. you see the way the fives moved down. look at tens. they are challenging their lows over the last couple days. pay attention to 292, 291 area. how did it affect the dollar index? taking out its lows as well. the last chart here's the silver lining. this is the etf. corporate investment grade. lqd. see the pop around noon eastern when we did verizon. see the bigger pop when we did the tens. this thing at least is bouncing around, mostly going lower. tyler, back to you. >> thank you very much. as i watch those charts, there's another chart we should draw your attention to and that is the dow at the high of the day, up 104 points at 15295 i believe i just saw. helicopter parents and coddled kids why more and more companies are meeting the parents when they hire millennials. plus, independent contractors or employees?
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let's go over topics in the power rundown with sue and bob. a comeback folks are not going to be happening for anthony weiner or eliot spitzer. the disgraced i guess you can say disgraced politicians plagued by their sex scandals were not able to convince the people of new york to vote for them for mayor and comptroller. what is the electorate saying there and what's next for the two? bob, you go first. >> i'm tempted to say that they broken the old narrative. the narrative was fame, disgrace and then redemption. they've broken that narrative. but i think it's simpler than that. i think people saw that weiner was not a compelling character. twice caught, really? and as for mr. spitzer, he has severe image problems. a lot of people don't like the way he presents himself and just too much baggage there. i think we should leave it at that one. >> sue, do you think their political careers are done? >> i think they probably are done but i don't think they think they are done.
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they're both gentlemen who seek the spotlight and i think they will seek the spotlight again in some other way, shape, or form. however, i do think that the results of the vote should be quite telling to them. however, i don't think -- i just think -- they're here to stay. leave it that way. >> "the wall street journal" highlighting this recent trend. perhaps surprising, certainly was to me, millennials are bringing their parents to work. they call them helicopter parents. some employers are embracing parental involvement to attract and hold on to talent and boost employee morale so should parents be involved at the work place if sue? >> absolutely not. i mean i understand it, however, we're all doing our best to make our kids independent and, you know, successful. i can't even get my 8-year-old now to let me walk him into school. there's no way he's going to let me walk into the work place with him nor would i want to. i want him to stand on his two feet, negotiate his own contracts.
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to me it strikes me as just coddling your kids and that's my opinion. i don't know, what do you think, bob? >> the more we hold on to them the more we hold them back. >> nobody wants to let go, but you got to let go. >> embrace the involvement of parents. wait until these companies have to deal with parents. hello, this is mrs. smith, my daughter worked for you for three weeks and she hasn't advanced and i'm wondering why. >> that's what it's going to boil down to. >> privacy concerns. >> shathey're going to shut the door to that soon. >> let's move to another topic. a federal judge ruling exotic dancers in new york city are protected by labor laws and entitled to at least the minimum wage. this after a class-action lawsuit brought by strippers at rick's cabaret in midtown, manhattan. i mean, i guess they should get the minimum wage. they're working. right? >> i thought they already were? >> yeah. i guess somebody wasn't paying them. >> i just assumed that. i mean you know frankly i don't spend a lot of time thinking
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about this. >> well i do. >> okay. bob, you go next. >> i walked right that. keep the pictures up, please. they're not -- they are not independent contractors. they're employees. they are required to be there at certain hours. and that's a definition of an employee. an independent contractor doesn't have -- my wife is anco works for a realtor. with that said, anybody is going to take their clothes off for $7.25 an hour ought to have their head examined. they're going to make their money from the tips. i don't think it's that important. legally i think they are. >> what he said. >> i guess the nub of the issue is the idea of whether they're independent contractors or employees. >> right. employees. >> of the restaurant or club that hires them. >> yep. >> we've settled that important one now. >> keep the pictures. >> and i'm so glad we did. >> bob. >> sorry. >> the dow at the high of the day, up 108 points there. earlier in the show we talked about where there's a new bubble
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in housing, now another big bubble may be about to pop. and robert frank has the details. >> maybe not so much a bubble, more like a balloon. as in a boon balloon dog. yep. famous balloon dog, one of my favorite pieces, one artist many say could be over inflated. we'll talk about the bernanke art bubble and how to trade it that's coming up after the break. mm. some laxatives like dulcolax can cause cramps. but phillips' caplets don't. they have magnesium. for effective relief of occasional constipation. thanks. [ phillips' lady ] live the regular life. phillips'.
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20 years with the company. thousands of presentations. and one hard earned partnership. it took a lot of work to get this far. so now i'm supposed to take a back seat when it comes to my investments? there's zero chance of that happening. avo: when you work with a schwab financial consultant, you'll get the guidance you need with the control you want. talk to us today. nascar is ab.out excitement but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media
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can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans. coming up on "street signs" at the top of this hour we are getting mixed messages. on the one hand mortgage applications aring as rates right but we'll talk to one of america's top real estate advisors about cities that have real estate markets on fire. the ceo of songers about how the itunes radio launch will impact them. mcdonald's is in the house, burgers, fries, wings. why? you have to tune in to find out. all that and more coming up on "street signs" at 2:00 p.m. eastern. >> see you at 2:00. in a few minutes, today's yahoo!
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finance question of the day. where do you stand on housing after the latest big drop in mortgage applications. 27% said they thought a bubble was about to burst, 22% said we're still recovering. 51% said the upswing in housing was slowing. very interesting results today. to seema mody for a market flesh. >> facebook shares are up 3% right now closing in on its all-time high of 45 bucks a share. right ahead of ceo mark zuckerberg's highly anticipated fireside chat tonight at the tech crunch disrupt conference. investors are expected to tune in to watch for any commentary about facebook's growth strategy. back to you. >> thank you very much. we know about the housing bubble and the stock market bubble but what about the art bubble? is it about to pop and what impact might that have? our wealth editor robert frank, here with a closer look. a bubble in art. >> yeah. you know, art prices never make much sense even to top
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collectors. a growing number of investment gurus warn parts of the art market may be headed for a fall. jim grant saying that advisors to -- investors in art should, quote, short coons and sell newman. came up at auction in sotheby's in the spring for more than $10 million. grant wonders how you tell a work of genius from, quote, just another vacuum cleaner. the newman he's talking about is barnett newman whose painting one mint six sold for $43.8 million at auction. it's in the eye of the beholder but grant says all the hype and interest rates may be overinflating some artists. miniature interest rates have reduced the opportunity costs of investing in any kind of nonyielding asset and histories that yet to judge artists whose painting dust heads just sold for $48 million. how do you trade it? grant says buy lincoln as in
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abraham lincoln and historic documents from founding fathers. lincoln letter sold for a mere $81,000 in june and the first newspaper printing of the declaration of independence sold for $632,000. well koons may be friendy lincoln will never go out of style. >> i will sell my beautiful vacuum cleaner for less than the cost of that. >> okay. >> if anybody wants to make an offer. thank you. >> bank of america snapping up a chunk of gm shares with the stock up 25% this year. what should you do? should you follow bank of america and buy? plus, verizon, mammoth bond offering to pay for its acquisition of verizon wireless. are verizon bonds worth opening? answers to those two questions on the other side of this quick break. we'll be right back.
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a giant sale for two big cap stocks. verizon selling $49 billion in bonds, the largest corporate bond offering on record. and bank of america buying 30 million shares of gm. should you buy gm? joining us to talk about both of these are cnbc contributors jeff killberg and jim ouro. start with voh verizon. the yield on the ten year and 30 year pretty darn compelling.
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jim, would you buy it? >> i would. i didn't buy it but i'm considering it if i can still get it at those levels. particularly the three-year talking about a treasury rate trading at .9 and to get that for 160 basis points over that seems to me very good. it also, by the way, we should read into this it seems like verizon agrees with me and thinks rates are going up long term for them to float all this right now. >> this is a huge deal. unlike orio this is a huge deal. two days, one to announce it and two to price it. to put it in layman's terms, look at the apple deal they did. now it's 225 basis points over the ten year. talking north of $100 billion in subscriptions. we'll see if he gets his fill. >> to put it in a faner point one of the first corporate bonds and i relate things their credit rating versus the state of illinois or city of chicago that's a good deal and i am thinking about getting in.
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>> there's a lot of pension plans that need this in their port flol, sue. they need the yield. >> couldn't agree with both of you more. let's talk about gm, would you buy it? bank of america is buying a large chunk from the canadian entity selling it. would you buy it, jim? >> well, it's gone up 75% in a year's time. it seems to me it put in a short-term high and now it's trending lower. i think for a long-term it's fine, particularly if they're saying europe seems to be on the mend. got to be good for gm longer term. i think their entry point is bad. it's going to pull back to in my opinion is 35, but i wouldn't be buying it after this run. i would rate. >> you don't dispute the trade, you dispute the price point. >> yes. >> typically sue, when a big bank of america they take down that many purchases those usually get laid off quickly. not a lot of risk on the table which with them. i wouldn't be buying it here. look at august, the automakers had a great month, tremendous, but think about it, more of a timing issue. we are seeing america's fleet,
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car fleet, the oldest age, 11.4 years. rewind a decade ago, 9.7 years old. i'll help him do the math. >> i had the math snin i think the automakers will struggle by the way. >> i own ford by the way. >> we'll leave it there. thank you. always appreciate it. at&t having to back down on twitter. stirring up a big september 11th controversy. we'll talk about that. another lesson about the pitfalls of twitter and your message coming up next. [ tires screech ]
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all right. facebook hitting an all-time high crossing the $45 a share mark for the first time ever. back a little bit off of that just in the past couple seconds. big lesson, though, on the dangers of social media. at&t learning it the hard way today and seema mody is on the case. seema? >> that's right, tyler. 12 years after 9/11, it's still a sensitive topic for all, especially corporate america. at&t tweeted a photo that it had hoped would pay tribute to those impacted by 9/11. but the twittersphere disagreed thinking at&t was trying to cash
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in on the tragedy. tweeting things like not an occasion for product placement. at&t apologized and pulled the tweet saying the image was solely meant to pay respect. >> sometimes the line can get blurry. >> absolutely. >> seema mody, thank you very much. >> that will do it for this edition of "power lunch." thanks for joining us. >> "street signs" begins right now. see you tomorrow. so much for the new iphone pop. apple shares one of the worst performers of the s&p 500 right now. we're going to dig into why and what it will take to turn it around. but you'll never guess which company has been absolutely on fire lately. here's a hint. it's an old-school retailer and its name is not jc penney. plus, bubblish shus. one of america's

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